Finding the market’s highest-growth prospects at any given time isn’t terribly tough to do. Finding stocks capable of quintupling in value over the course of the coming five years, however, is a different story. Their underlying companies need to be doing everything right, and doing business in an industry that’s poised for some serious sustained growth. A temporary setback from these stocks helps too. That’s a tall order to be sure.
But, there’s a handful of such names available to you right now. Here’s a deeper dive into three of the best bets right now with the potential to turn a $1,000 investment into a $5,000 position by the end of 2030.
Amazon
You know the company. Amazon (AMZN -0.32%) is of course the king of the western hemisphere’s e-commerce realm, controlling 40% of North America’s market, according to numbers from Digital Commerce 360. It’s not doing too shabbily overseas either. Its international arm experienced 12% top-line growth in the third quarter of last year, pushing it even deeper into the black where it looks like it’s finally going to stay. (Its North American e-commerce arm has been profitable for some time now, but is also growing its operating income at an above-average clip.)
Neither of these are the reason you might want to consider stepping into a stake in Amazon as this time though, in anticipation of a heroic five-year move from the stock.
Rather, the crux of the bullish argument here is the company’s breadwinning cloud computing business. You know it as Amazon Web Services, or AWS. Thanks to last quarter’s revenue growth pace of 19% extending comparable year-to-date growth, AWS now accounts for over 60% of the company’s operating income. And that figure’s still growing pretty fast too.
Data source: Amazon Inc. Chart by author. Figures are in billions.
It matters simply because the cloud computing market’s still got plenty of growth runway ahead. Mordor Intelligence expects the global cloud computing market to grow at an average annualized pace of more than 16% through 2030.
The continued expansion of Amazon’s e-commerce operations certainly doesn’t hurt the bullish thesis either, of course. Investors seems to be underestimating all of it.
Iovance Biotherapeutics
It’s been a tough past four years for Iovance Biotherapeutics (IOVA 1.90%) shareholders. This stock was all the rage between 2019 and 2020 before finally peaking at $54.21 in January of 2021, and then tumbling all the way back to a 2023 low of $3.21. Its current price near $6.00 isn’t a whole lot better either.
This steep selloff, however, may be a fantastic buying opportunity rooted in the notion that sometimes investors collectively have terrible timing.
But first things first.
Just as the name suggests, Iovance Biotherapeutics is a biopharma name. Its flagship product is a tumor infiltrating lymphocyte (TIL) treatment called Lifileucel that’s been in the works for years, but only secured its first FDA approval (as a treatment for melanoma) in February of last year. Although widely expected, it was still a major milestone for the pre-commercial-revenue company.
And the response has been good. Iovance sold nearly $60 million worth of the young (and expensive) drug during the three-month stretch ending in September.
Investors, however, haven’t maintained a bullish response to any of this success.
What gives?
The action here is actually somewhat typical of small biopharma stocks working on a single, game-changing drug candidate. This company burned through all of its prospective euphoria-driven bullishness back in 2019 and 2020, when it first became clear that Lifileucel was likely to win approval. In the three years in between then and that approval, investors largely lost interest.
The irony is that Iovance Biotherapeutics’ growth story has never been more compelling than it is right now. Credence Research suggests the nascent and underserved tumor infiltrating lymphocyte drug market is poised to grow at an annual clip of nearly 40% through 2032, when is should be worth on the order of $2.5 billion. Given that Iovance is one of the first and few outfits successfully working on this science, investors should begin seeing and pricing in its potential -- and actual growth -- in the foreseeable future.
Roku
Last but not least, add Roku (ROKU -2.43%) to your list of stocks that could turn $1,000 into $5,000 by 2030.
Much like Iovance, Roku shares soared during (and even because of) the early days of the COVID-19 pandemic. Millions of consumers were suddenly stuck at home with little else to so but watch television. Roku’s streaming players helped make it possible.
As could have been expected following this stock’s unchecked meteoric rise, though, the market eventually began to recognize its then-lofty valuation made little sense. Shares lost over 80% of their value over the course of 2021 and 2022, where they’ve been stuck ever since. The company’s lack of profitability during this stretch certainly hasn’t helped either.
Now take a closer look at… well, everything Roku is and does. Even though it’s given up some of this share of late, industry research name Pixalate says Roku still controls an impressive 37% of North America’s connected-television (CTV) device market. The next-nearest competitor of this crowded arena is still well behind at only 17%.
The company’s not doing quite as well overseas, but only because it’s focusing more time and resources on the domestic market where it’s doing so well, and where the bulk of its opportunity awaits. Global Markets Insights says the worldwide streaming/on-demand video market is set to grow by an average of 11% per year through 2032, led by North America where more than 40% of this business is done.
That’s not the only bullish catalyst ready to push this stock higher, however.
Although Roku is back in the red after a brief swing to a profit back in pandemic-laden 2021, its current revenue and income trajectories put it on a path back into the black again by next year. Oh, it’s not likely to be a huge profit; analysts are only looking for 2026 per-share income of $0.36 that year. That’s not apt to be the end of this growth trend though. Its top and bottom lines should continue improving beyond that.
Data source: StockAnalysis. Chart by author.
The stock of course is likely to start rallying well before this feat of viability is re-achieved, in anticipation of what’s increasingly-clearly coming.
